Accounting 2103 Chapter 5 Assignment Assionment 1 1. Journalize the following transactions for McNabb Company: May 1: Purchased $4000 of merchandise on account from Romo Company, terms 2/10, n/30 2. Purchased $5000 of merchandise on account from Brees, Inc, terms 1/10,n/30 3. Sold $1500 of merchandise on account to Brady Company, terms 2/10,n/30, cost of merchandise sold: $625 6: Returned $400 of merchandise to Romo Company for credit (May 1 transaction) 6: Retumed $2000 of merchandise to Brees, Inc. (May 2 transaction) 8: Brady Company retumed $50 of merchandise; cost of merchandise retumed: $29 8: Purchased merchandise on account from Manning Company totaling $2,000, terms 2/10, n/30 8: Purchased supplies on account, \$350 9. Paid cash for equipment, $5000 9: Paid Romo Company in full, amount owed 11: Paid Brees, Inc, in full, amount owed 11: Granted Brady Company an allowance of $50 13. Brady Company paid McNabb in full, amount owed II. Adjusting the Inventory Account The inventory T-Account showed a balance of $42,775. An actual count of inventory on hand amounted to $41,995. Prepare the adjusting entry needed. III. Use the information below to prepare closing entries Sales Revenue: $420,000; Sales Returns \& Allowances: 575,000 ; Sales Discounts: 542,000 ; Cost of Goods Sold: \$160,000; Salary Expense: \$48,000; Rent Expense: \$17,000; Advertising Expense: \$5000, Depreciation Expense: \$8,000; Dividends: \$12,000 Chapter 5 Assionment